The Politically Incorrect Guide to Economics

Politically Incorrect Guides

by Thomas J. DiLorenzo

Another entry in the best-selling, irreverent, hard-hitting Politically Incorrect Guide series! Economics from a rational, conservative viewpoint—that is, a refreshing look at how money actually works from an author who knows the score, and how the law of economics are frequently broken and derailed by pernicious leftists and virtue signalling progressives.

Genres: Economics, Nonfiction, Politics, Audiobook

263 pages, Kindle Edition

First published January 1, 2022

About the author

Thomas James DiLorenzo is an American economics professor at Loyola University Maryland. He identifies himself as an adherent of the Austrian School of economics. He is a senior fellow of the Ludwig von Mises Institute and an associated scholar of the Abbeville Institute. He holds a Ph.D. in Economics from Virginia Tech.

Reviews

[Hamoon Soleimani · Rating 5 out of 5]

A wonderful book. Referring to economic fallacies, politicians' deceit, common economic myths.
Highly recommended... 💯

[Ronald J. · Rating 4 out of 5]

The politically incorrect series has produced some works that challenge a lot of conventional wisdom. This book is in that spirit. It does a good job discussing the Austrian School, Chicago School, and the Public Choice School of economics. DiLorenzo begins by challenging the “scientism” of the Keynesian Revolution, and the theories of “market failure” and “perfect competition.” You read that political control of prices is the worst economic idea in history (one that we seemed condemned to repeat forever). The Code of Hammurabi was in reality a maze of price control regulations. Even Nazi war criminal Hermann Goering admitted to an American journalist about what a horrible mistake the Nazi price controls had been. Controlling prices and wages meant controlling people’s lives. The division of labor is the “glue that holds human civilization together.” Capitalism is based cooperation, not survival of the fittest. Even the most unfit can live a decent life under capitalism. It is businesspeople who are the real “public servants,” providing the public with what they want.

There’s a chapter on the Nirvana Fallacy in Economics, which is excellent. Comparing reality on the group to some idealized version of perfection, which is simply not possible with anything designed by humans (crooked timber and all that). Whether it’s perfect competition (Hayek: “In perfect competition there is no competition”), asymmetric information, externalities, more government and more regulation and taxation is always called for. But is there not government failure and imperfection? Antitrust is taken down as well, especially the straw-man of “predatory pricing,” which has never happened anywhere in history. Why not? Because the biggest seller who engaged in it would lose a ton of money, since they produce the most, and even then, competitors would reenter the market. Even the New York Times was against the 1890 Sherman Act. The next chapter destroys a lot of myths of market failure: Bees apple growers, no private lighthouses could ever emerge, the QWERTY keyboard vs. the Dvorak, and VHS vs. Betamax are all ideas of market imperfection that would simply wrong. Why socialist countries have the worst environmental record, due to the tragedy of the commons. Excellent chapter on regulatory capture, with a good history of the ICC and CAB, FDA, taxi cabs, etc. The author prefers “plunder-seeking” to rent-seeking because it is more descriptive of what is happening. A chapter on labor, including the economics of unions and the minimum wage. A chapter is dedicated to the Federal Reserve, the author is not a fan. The janitor there made $163,800 per year, so he may have a point. The remaining chapters deal with income taxes (the root of all evil), free trade, and socialism. If you have never been exposed to some of these ideas, this book is a great overview. There are many interesting facts and stories woven throughout, as is typical in the politically incorrect series.

Notable

Frederic Bastiat: “If goods can’t cross borders, armies will.”

Ludwig von Mises said in 1949 that most universities had already become “nurseries for socialism.”
“Occupational Licensing Data Base,” National Conference of State Legislatures, https://www.ncsl.org/research/labor-a....

[Konstantin Samoylov · Rating 4 out of 5]

DiLorenzo is clearly well-versed in his field, yet his presentation in the book struck me as a little bit too ideological. I actually agree with much of his perspective. But I would have preferred a more scientific approach:
- what exactly we can observe,
- what explanation the opposite side had,
- why you think that the only explanation that fits observable facts is different

[Sergiusz Golec · Rating 5 out of 5]

With that book, you'll find info why it's 'Guide to Economics' and why it's 'Politically Incorrect'.

One of the best pieces - money crimes! Including the government, COVID, FDA (Food and Drug Administration), FED, and why the illusion of socialism is so dangerous.

[Lee · Rating 1 out of 5]

A strange combination of well-argued introduction to Austrian economist alongside a diatribe by your tinfoil-hat-wearing uncle bitching over a Thanksgiving turkey about those communists in the Democratic party.

Read 10%.

[Donkey · Rating 5 out of 5]

Brilliant overview of Austrian economics for dummies a must read for all economically illiterate people!

[Ahmed · Rating 3 out of 5]

Bureaucracy Bad. Tis my takeaway from book

[Batotit · Rating 1 out of 5]

Given today's (2025) economic status of the country, this crap didn't age well. So, what's your take on tariffs?